FSA to vet financial products before they go on sale

Press Association 1157AM GMT twelve March 2010

Hector Sants, the arch senior manager of the Financial Services Authority, has a new plan to strengthen consumers from misselling.

The Financial Services Authority (FSA) plans to turn some-more active by interlude unsure products from being sold, rather than assisting consumers get calibrate once the repairs has been done.

The new concentration will engage it operative closely with firms as they rise new monetary products to see if they enclose risks for consumers, prior to they are done at large available.

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It will additionally see at how products are promoted and sold, with FSA staff posing as poser shoppers to try to mark intensity mis-selling scandals prior to they develop.

It will additionally cruise either products are being marketed to the right people and either they are befitting for all consumers.

The regulator pronounced it programmed to put some-more resources in to safeguarding consumers, nonetheless it would not divulge a figure, observant the commercial operation plan for the entrance year was due to be published subsequent week.

But a mouthpiece stressed that it would be a "very apparatus complete strategy".

Hector Sants, arch senior manager of the FSA, will outline serve sum of the new proceed when he delivers the annual Lubbock Lecture in Management Studies at the Said Business School in Oxford after today.

There have been a series of mis-selling scandals in new years, together with remuneration insurance insurance, that in a little cases was sole to people who would never be means to explain on the policies.

Personal pensions, capacity mortgages and separate collateral investment trusts have additionally been sole to large numbers of consumers notwithstanding being unsuited for them.

Mr Sants certified that the FSA should have stepped in progressing to forestall mis-selling.

He told the BBC "(We need to) break down into parts some-more comprehensively what particular firms are up to, and get some-more concerned in the pattern theatre (of monetary product development)."

But he combined that the FSA would not be pre-approving each product that came on to the market, as there were as well most of them.